Whether service tax apply to a website owner?

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Dear all,

A query on service tax applicability here.....

A webiste owner is getting revenue from Google Adwords, located at singapore in dollars, for using space on his website.

His revenue for year is more than 17 lakhs, whether he required to pay service tax on his revenue ?

He also paying to Google India Pvt Ltd, Guargon for advertising his website on various websites, what is the tax liability on these payments if it includes service tax can he get CENVAT input credit on such payments?

Thanking you...

srinu b

Replies (2)

ANUP GUPTA

KEEP SMILING fcaanupgupta@gmail.com

227 Points Posted on 03 August 2014

Advertisement space sale on website is taxable

Vikas

1245 Points Posted on 04 August 2014

Dear Anup,

“selling of space or time slots for advertisements other than advertisements broadcast by radio or television” is still covered under the negative list.

So my friends, as of now, no Service tax would be payable on such services.

However, an amendment is proposed vide the Finance Bill 2014-15 wherein it would be changed to

“selling of space for advertisements in print media;”

Therefore, after receipt of the President’s assent to the Finance Bill, your services would become taxable.